Good afternoon, and welcome to the Dave & Buster's First Quarter 2025 Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Cory Hatton, Head of Entertainment Finance, Investor Relations, and Treasurer. Please go ahead.
Thank you, Operator, and welcome to everyone on the line. Joining me on today's call are Kevin Sheehan, our Board Chair and Interim CEO, and Darin Harper, our CFO. After our prepared remarks, we will be happy to take your questions. This call is being recorded on behalf of Dave & Buster's Entertainment and is copyrighted. Before we begin the discussion on our company's first quarter 2025 results, I'd like to call your attention to the fact that in our prepared remarks and responses to questions, certain items may be discussed which are not entirely based on historical fact. Any of these items should be considered forward-looking statements relating to future events within the meaning of the Private Securities Litigation Reform Act of 1995. All such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ from those anticipated.
Information on these risks and uncertainties have been published in our filings with the SEC, which are available on our website. In addition, our remarks today will include references to financial measures that are not defined under generally accepted accounting principles. Investors should review the reconciliation of these non-GAAP measures to the comparable GAAP measure contained in our earnings released this afternoon. With that, let me turn the call over to Kevin.
Thanks, Cory. Good afternoon, everyone, and thank you for joining our call today. I'm pleased to report that we are making good progress and our operating results significantly improved over the course of the first quarter. While performance in the quarter was nowhere close to where we want and expect to be, our back-to-basic strategy is working and is driving a material recovery in our top-line trajectory. In the quarter, we unwound many clear mistakes and made high-confidence changes to marketing, menu, operations, remodels, and games investment. While we are still in the early innings, we are improving our execution every day and have a very clear roadmap of work to do to continue to drive improvements and meaningful growth in the business.
The leadership team and our board are as confident as ever that our current actions will lead to significantly improved revenue, adjusted EBITDA, free cash flow, and shareholder value in the months ahead. As you all know, our financial position remains strong, and we have an excellent business model with high returns on new unit investment, best-in-class store-level economics, disciplined expense management, and significant operating free cash flow generation. As we have discussed before, the current leadership team and the full board are laser-focused on managing this business to drive both revenue growth and free cash flow generation. Our team continues to be energized by the opportunities we see ahead to meaningfully improve the operating performance of the business and shareholder value.
Our results in May were very encouraging, with a particularly robust Memorial Day weekend of solidly positive sales to kick off the summer, and we expect this momentum to continue. Results so far in June continue to show improvement. In fact, we have produced positive same-store sales in 11 of the last 30 days. Let me take a few minutes to update you on our progress on each of our back-to-basics plan and the changes we are making or plan to make to continue to unwind mistakes and deliver better execution and improved results. On marketing, we have rebalanced our media spend across channels, including getting back on TV, improved our creative, and simplified our messaging. We have successfully reintroduced our historically successful and best-in-class Eat-and-Play Combo, which has had really positive early results.
We will continue to refine and sharpen our marketing strategies and lean into our historically most popular and effective promotions. We also recently introduced our first-ever Summer Pass, allowing our guests to get unlimited gameplay and great food and beverage discounts each time they come to visit. Early feedback and results have been very encouraging. On operations, we have diagnosed many of the overwhelming factors for our operators that were requiring too many not fully tested or thought-out changes to promotions, menu, service style, pricing, labor setup, remodels, all while cutting back on training and failing to properly engage with the store team. We've significantly scaled back, returned to our proven practices, and have continued to spend significant time listening to our operators and their insights.
To that end, we are actively rolling out a robust store manager incentive plan driven by same-store sales growth that has positively shocked the system in a very morale-boosting way by allowing our managers to become the true owners of their business. On the F&B front, our classic Eat-and-Play Combo is a huge fan favorite and continues to perform very well with a double-digit opt-in rate given our strong promotion of this incredible value. The Eat-and-Play Combo allows our guests to sample our menu offerings and try out new games, which keeps them coming back for more. We have also corrected many pricing issues and enhanced the menu layout and are hard at work on the introduction of a new menu bringing back our previously top-selling entries, which we think will continue to drive check. This menu will be rolled out later this year after extensive testing.
I should note our food and beverage sales have markedly improved since April. On remodels, we are approaching the completion of 48 remodels and are continuing to see relative outperformance of these units versus the system. In particular, remodeled stores in the aggregate have outperformed the system by over 700 basis points over the last three months. As we've discussed, we launched remodels without proper prototype testing, operator input, store prioritization, local marketing, or budget control. We remain confident in the remodel strategy and are actively refining the prototype with operator input, reprioritizing stores, and tightened budget oversight. We continue to have a significant runway of opportunity to remodel and upgrade our system, and are supremely confident that with proper execution and oversight, we will generate highly attractive ROIs and lead to meaningful increases in sales and cash flow.